Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’…
Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’ control are a leading cause of low performance, there is a lack of efficient risk mitigation practices in Saudi to manage these risks. The main aim of this dissertation is to assess the current practices applied by contractors to minimize risk out of their control and develop a risk mitigation model to manage these risks. The main objectives of the study are: investigating the risks that are out of contractors’ control, assessing the contractors’ current risk mitigation and performance measurement practices, and finally developing and validating a risk mitigation model to minimize risks out of contractors’ control and measure performance of involved project parties. To achieve the study aim, a mixed methodological approach was adopted. Theoretical approaches were utilized to review previous research and to develop a conceptual risk mitigation framework followed by a practical approach that is considered with collecting data from contractors. The quantitative method was mainly used to meet the study objectives through distributing a survey in the form of a questionnaire. As a consolidation of the study findings, the top ranked risks that are out of contractors’ control were identified. Furthermore, the results identified that the contractors’ current risk management and performance measurement practices are not effective in minimizing projects risks caused by other parties and ineffective in measuring performance of all parties. The developed model focuses on increasing accountability of project parties through mitigating project parties’ activities and risks with measuring the deviations and identifying sources of deviations. Transparency is utilized in the model through sharing weekly updates of the activities and risks combined with updated information of performance measurements of all project parties. The study results showed that project risks can be minimized and projects’ performance can be increased if contractors shift their focus using the developed model from only managing their own activities and risks to managing all project parties’ activities and risks.
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Delays are a major cause for concern in the construction industry in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in Mecca, Saudi Arabia, and compares these with projects around the country and other Gulf…
Delays are a major cause for concern in the construction industry in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in Mecca, Saudi Arabia, and compares these with projects around the country and other Gulf countries. Data was obtained from 49 infrastructure projects undertaken by the owner and were analyzed quantitatively to understand the severity and causes of delay. 10 risk factors were identified and were grouped into four categories. Average delay in infrastructure projects in Mecca was found to be 39%. The most severe cause of delay was found to be the land acquisition factor. This highlights the critical land ownership and acquisition issues that are prevailing in the city. Additionally, other factors that contribute to delay include contractors’ lack of expertise, re-designing, and haphazard underground utilities (line services). It is concluded that the majority of project delays were caused from the owner's side as compared to contractors, consultants, and other project's stakeholders. This finding matched with the research findings of the Gulf Countries Construction (GCC) Industry's literature. This study fills an important practice and research gap for improving the efficiency in delivering infrastructure projects in the holy city of Mecca and Gulf countries at large.
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Research has shown that construction projects in Saudi Arabia have exhibited poor performance for the past three decades. The traditional risk management practices have been ineffective at helping contractors deliver projects on time and within budget while meeting quality expectations.…
Research has shown that construction projects in Saudi Arabia have exhibited poor performance for the past three decades. The traditional risk management practices have been ineffective at helping contractors deliver projects on time and within budget while meeting quality expectations. Studies have identified that client decision making is one of the main causes of risks that occur on projects in Saudi Arabia. This paper proposes a new risk management model that can minimize client decision making, and enable the client to utilize expertise, thereby improving project quality and performance. The model is derived from the Information Measurement Theory (IMT) and Performance Information Procurement System (PIPS), both developed at Arizona State University in the United States (U.S.). The model has been tested over 1800 times in both construction and non-construction projects, showing a decrease in required management by owner by up to 80% and an increase in efficiency up to 40%.
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For the past three decades, the Saudi construction industry (SCI) has exhibited poor performance. Many research efforts have tried to identify the problem and the potential causes but there have been few publications identifying ways to mitigate the problem and…
For the past three decades, the Saudi construction industry (SCI) has exhibited poor performance. Many research efforts have tried to identify the problem and the potential causes but there have been few publications identifying ways to mitigate the problem and describing testing to validate the proposed solution. This paper examines the research and development (R&D) approach in the SCI. A literature research was performed identifying the impact that R&D has had on the SCI. A questionnaire was also created for surveying industry professionals and researchers. The results show evidence that the SCI practice and the academic research work exist in separate silos. This study recommends a change of mindset in both the public and private sector on their views on R&D since cooperation is required to create collaboration between the two sectors and improve the competitiveness of the country's economy.
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